Commercial Director - METIP MEGlobal International FZE
Now that polyester consumption is continuously increasing in the global market, demand for MEG is also expected to rise, isn’t it? Why?
The growth of this industry is closely linked to consumerism. Applications are directly related to human consumption, be it in clothing, food and beverages, housing to advanced ones like solar panels and automobiles. The per capita consumption in some countries like China and India are way below the global average. With more and more of these middle class families emerge having higher incomes, evolving appetites for branded goods and more urbanization, the more would the glycols be consumed.
Currently, the supply for MEG as compared to its demand is quite uncertain. Do you agree with this statement? Please elaborate.
The global demand growth of roughly 5 % is precariously balanced with planned expansions in the next 2-3 years horizon. Here, the uncertainty arises from the fact that unconventional technologies operating rates are determined by the challenges it faces, and presently barely able to manage the demand growth.
MEGlobal also deals in DEG as a product. Can you explain a bit about this product, its demand and supply in the global supply chain?
Diethylene glycol (DEG) is a valuable chemical intermediate used in the production of unsaturated polyester resins (UPR), plasticizers, acrylate and methacrylate resins and urethanes.
Other products that capitalize on DEG properties include Thermoplastic Polyurethanes, emulsifiers, glass-and-cement-grinding aids, furniture and shoe polishes and printing ink.
Toxicity in DEG is a widely recognized fact. In such conditions, how appropriate is the use of this component in synthetic fibers?
The safe use of MEG and DEG is very well documented and understood in the industry. MEGlobal has a document for non-supportive use of our material and we ensure our customers are aware of this product safety requirement.
How do you see the glycol market in India going ahead?
India in my opinion is on a re-bound. The sentiments are positive post the new government with economic development as main agenda. It has had sub par or below potential performance in the recent past, but we see it achieving a 7% GDP growth rate sustainably. With regards to glycol industry, India was and is a strategic market for us and we would continue to treat it like one.
What are the challenges the industry could face in your opinion?
As this industry matures, the nature of its challenges would become more intricate. Supply chain integration, feedstock to human resource issues, every stage poses its own difficulties. Even though the world is trying to be proactive by securing cheap feedstock supplies in the form of coal, chemicals or shale gas based plants, this may require a massive technological revamp and will need time and investment. Sustainability continues to be the mantra and every effort is being made to strike a balance.
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